New Look attracts interest from Chinese investors

Following reports that British high street fashion label New Look was preparing for a 2 billion pounds flotation news has emerged that a potential sale may be on the cards instead.

New Look's private equity owners Permira and Apax have reportedly held talks with a number of China's biggest investors as its expanding presence in the country could signal the start of a bidding war. Fosun, the Chinese conglomerate which took a 5 percent stake in tour operator Thomas Cook last month, alongside with Chinese private equity funds CDH and Citic Capital have shown interest in purchasing New Look from its current owners according to the Sunday Times.

The discussions for the potential sale are said to be at a preliminary stage, as Apax and Permira are believed to consider a stock flotation as a backup option. China is currently one of New Look's main markets for growth, with a presence of 18 physical stores as well as a digital storefront on Alibaba's Tmall.com, which has 180 million buyers.